Interim Report Q2 2013 | KION GROUP - Related party disclosures

In addition to the subsidiaries included in these condensed consolidated interim financial statements, the KION Group maintains direct or indirect relationships with a large number of unconsolidated subsidiaries, joint ventures and associates in the course of its ordinary business activities. Related parties that are controlled by the KION Group, through which a significant influence can be exerted over the KION Group, or which are members of the Superlift group are either included in the list of shareholdings as at 31 December 2012 or in the table below. >> TABLE 34

Related parties	>>TABLE 34

Superlift Holding S.à r.l., Luxembourg	Parent company
Kohlberg Kravis Roberts & Co. L.P., New York, USA	Entity with significant influence
Goldman, Sachs & Co., New York, USA	Entity with significant influence
Weichai Power Co. Ltd., Weifang, China	Entity with significant influence
KION Management Beteiligungs GmbH & Co. KG	Stockholder

Superlift Funding S.à r.l., Luxembourg

Under a supplementary loan agreement dated 23 September 2009, investment funds advised by Kohlberg Kravis Roberts & Co. L.P. (“KKR”) and The Goldman Sachs Group, Inc. extended the SFA to include an additional loan of € 100.0 million to be paid via Superlift Funding S.à r.l., Luxembourg. The loan (including accrued interest) and the investment in Superlift Funding, together amounting to € 118.1 million, were converted into equity with effect from 11 June 2013.

Advisory

Weichai Power

Weichai Power Co. Ltd., Weifang, China (referred to below as Weichai Power) holds a 30 per cent stake in KION GROUP AG, Wiesbaden. In addition, Weichai Power has a controlling interest (70 per cent) in Linde Hydraulics GmbH & Co. KG, Aschaffenburg (referred to below as Linde Hydraulics). The remaining shares (30 per cent) in Linde Hydraulics are held by the KION Group. During the first half of 2013, the KION Group generated revenue of € 8.2 million from selling goods and services to Linde Hydraulics. Of this amount, € 3.9 million related to the second quarter of 2013. During the first six months of the year, KION Group companies obtained goods and services from Linde Hydraulics amounting to € 62.8 million. Of this amount, € 27.5 million related to the second quarter of 2013. The outstanding balances from the sale of goods and services stood at € 3.3 million as at 30 June 2013 (31 December 2012: € 1.0 million). Valuation allowances for receivables from Linde Hydraulics had not been recognised as at the reporting date, a situation that was unchanged on 31 December 2012. As at 30 June 2013, liabilities to Linde Hydraulics resulting from the purchase of goods and services came to € 4.5 million (31 December 2012: € 0.0 million).

In parallel with its advisory agreement with KKR and Goldman, Sachs & Co., KION GROUP AG also concluded an advisory agreement with Weichai Power on 7 June 2013. Under the agreement, Weichai Power will provide advisory services related to the Asia-Pacific region for the KION Group after its IPO in the event that the KION Group decides it wishes to draw on this expertise.

Weichai Power (Luxembourg) Holding S.à r.l., Luxembourg, acquired shares in the business by way of a capital increase. This capital increase caused the share capital to rise by €13.7 million and the capital reserves by € 314.7 million. As contractually agreed, payment of the share premium was still outstanding as at 30 June 2013. The outstanding amount of € 314.7 million was reported under other current assets.

Related party disclosures

Superlift Funding S.à r.l., Luxembourg

Advisory

Weichai Power

IR Contact

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